Page 141 - HCSD SOPandIC Manual

Generally, funds may not be used for:

• Advertising and public relations costs, promotional items and memorabilia, such as models, gifts
and souvenirs. School promotional materials are not allowed. However, advertising costs for
performance of the grant may include recruitment, procurement of goods, disposal of materials,
program outreach, and in limited circumstances, public relations.
• Alcoholic beverages
• Bad debts
• Contingency provisions (a budget estimate of future costs); Amounts for major project scope
changes, unforeseen risks or extraordinary events may not be included.
• Donations and contributions
• Entertainment cost except where specific costs that might be considered entertainment have a
programmatic purpose and are authorized in the approved budget for the Federal award.
• Fines and penalties except when incurred as a result of compliance with a specific provision of
the Federal award.
• Fundraising and investment management costs (limited exceptions)
• General government expenses (with limited exceptions pertaining to Indian tribal governments
and Councils of Governments)
• Goods or services for personal use
• Lobbying
• Selling and marketing costs (unless allowed under 200.421 – Advertising and public relations).

Refer to Sections 200.420 through 200.475 of the General Provisions for Selected Cost Items for
additional details regarding allowable and non-allowable costs.

The following Allowable Cost Considerations may be used to determine allowability:

• The cost is included and identifiable in the approved district grant application.
• The cost/program/activity is necessary for the operation, administration, or proper and efficient
performance of the program.
• The cost is generally recognized as ordinary, and the nature and amount do not exceed that which
a prudent person would pay under the circumstances.
• The purchase would be able to withstand external review by a prudent person at the local, state
and federal levels.
• The purchase/program/activity benefits the federal program in proportion to the percentage that
the federal program pays for the item/program/activity.
• The cost is allowed/permitted under the 2C.F.R. Part 200-Sections 200.420 – 200.475 and the
federal grant.
• The cost is allowed/permitted under state and local laws and policies.
• The cost/program/activity is not included in the district’s indirect cost rate.
• All appropriate and applicable documentation is provided and maintained for purchases.
• The cost/program/activity is supplemental and does not supplant.

[APPENDIX-6.1]